Tobacco farmers threaten to boycott selling their crop

It was business as usual at the auction floors as the Tobacco Industry and Marketing Board (TIMB) could not enforce the Zimbabwe Revenue Authority’s directive to withdraw a 10 percent on tobacco for farmers without tax clearance certificates.

The farmers say they will boycott selling their crop if the TIMB sanctions the ZIMRA directive.

The implementation of the ZIMRA’s directive to withdraw 10 percent tax on tobacco sales for farmers might take longer than expected as farmers vowed to withhold their gold leaf in protest against the treasury’s move.

The TIMB has remained mum on the implementation of the ZIMRA directive, but a visit by ZBC News to the floors show that farmers were selling their crop as usual without the 10 percent deductions.

Some officials at the floors who spoke on condition of anonymity revealed that the directive has been put on hold after farmers threatened to boycott tobacco sales.

The farmers however demand that the ZIMRA order should be shelved as it is tantamount to derail the central bank’s five percent export incentive and wipe the farmers hard earned proceeds.

In a circular to TIMB, the Zimbabwe Revenue Authority ordered that auction floors withhold 10 percent tax on tobacco sales for farmers with a valid tax clearance certificate in line with section 80 (2) of the income tax chapter 23:06.